The EU sanctions for the war in Ukraine have hit the Russian forest industry hard: in 2024, Russian producers will sell about 20.7 million cubic meters of sawn timber abroad, or 32% less than they exported in pre-sanction 2021. This follows from calculations by the consulting company Strategy Partners, which are published by Vedomosti.
Compared to last year, exports will be 1 million cubic meters less (it was 21.7 million). This is due, among other things, to a “slight decrease” in the volume of deliveries to China, which, after the ban on imports to EU countries, became the main buyer of sawn timber from Russia. Thus, according to Strategy Partners, in January-August, Russian producers supplied 7.8 million cubic meters of sawn timber to the Chinese market, which is 2% less year-on-year.
Uzbekistan will remain the second largest importer of Russian sawn timber by the end of the year, according to Strategy Partners’ assessment. The third key market will be the countries of the Eurasian Economic Union (EAEU; Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia). They are followed by Turkey.
Despite the fact that shipments to the CIS and MENA (Middle East - North Africa) countries are gradually growing, the dynamics of Russian exports are determined by demand and prices in the PRC market, analysts note. At the same time, logistical difficulties and restrictions on banking transactions with importers have a significant impact on supplies.
Russian enterprises in the forest industry mainly supply boards and beams made of coniferous trees abroad, which are used in construction. Meanwhile, the crisis in the real estate sector in China continues. In January 2024, the High Court of Hong Kong decided to liquidate China's largest developer, China Evergrande, whose debts to creditors reached $333 billion.
Against the backdrop of falling exports, lumber production in Russia is not declining. According to Rosstat, in January-August it grew by 0.6% year-on-year, to 19.3 billion cubic meters. Meanwhile, prices for sawn timber on the world market have fallen by 13% since the beginning of 2024, to $125.5 per 1 cubic meter, and the cost of delivery reached $50-55 for the same volume.
The EU imposed a ban on imports of forest products from Russia in April 2022. It was announced as part of the fifth package of sanctions due to the war in Ukraine. The restrictions included sawn timber, wood panels, plywood, paper and cardboard, as well as products of mechanical engineering and machine tools for the forest industry.
Roslesinforg estimated the volume of exports of Russian forest products affected by EU sanctions at $6 billion. In particular, in 2021, “unfriendly” countries accounted for 45.8% of the total volume of Russian forest product exports, of which 75% were exported to European countries, and another 9% to the United States. In 2021, forest industry product shipments exceeded $17.5 billion.
Compared to last year, exports will be 1 million cubic meters less (it was 21.7 million). This is due, among other things, to a “slight decrease” in the volume of deliveries to China, which, after the ban on imports to EU countries, became the main buyer of sawn timber from Russia. Thus, according to Strategy Partners, in January-August, Russian producers supplied 7.8 million cubic meters of sawn timber to the Chinese market, which is 2% less year-on-year.
Uzbekistan will remain the second largest importer of Russian sawn timber by the end of the year, according to Strategy Partners’ assessment. The third key market will be the countries of the Eurasian Economic Union (EAEU; Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia). They are followed by Turkey.
Despite the fact that shipments to the CIS and MENA (Middle East - North Africa) countries are gradually growing, the dynamics of Russian exports are determined by demand and prices in the PRC market, analysts note. At the same time, logistical difficulties and restrictions on banking transactions with importers have a significant impact on supplies.
Russian enterprises in the forest industry mainly supply boards and beams made of coniferous trees abroad, which are used in construction. Meanwhile, the crisis in the real estate sector in China continues. In January 2024, the High Court of Hong Kong decided to liquidate China's largest developer, China Evergrande, whose debts to creditors reached $333 billion.
Against the backdrop of falling exports, lumber production in Russia is not declining. According to Rosstat, in January-August it grew by 0.6% year-on-year, to 19.3 billion cubic meters. Meanwhile, prices for sawn timber on the world market have fallen by 13% since the beginning of 2024, to $125.5 per 1 cubic meter, and the cost of delivery reached $50-55 for the same volume.
The EU imposed a ban on imports of forest products from Russia in April 2022. It was announced as part of the fifth package of sanctions due to the war in Ukraine. The restrictions included sawn timber, wood panels, plywood, paper and cardboard, as well as products of mechanical engineering and machine tools for the forest industry.
Roslesinforg estimated the volume of exports of Russian forest products affected by EU sanctions at $6 billion. In particular, in 2021, “unfriendly” countries accounted for 45.8% of the total volume of Russian forest product exports, of which 75% were exported to European countries, and another 9% to the United States. In 2021, forest industry product shipments exceeded $17.5 billion.
